We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sherwin-Williams (SHW) Up 47% YTD: What's Driving the Rally?
Read MoreHide Full Article
The Sherwin-Williams Company's (SHW - Free Report) shares have surged 47% year to date. The company has also outperformed its industry’s rise of 44% to over the same time frame. Moreover, it has outpaced the S&P 500’s rise of around 24% year to date. The stock is also up around 11% over the past three months.
Sherwin-Williams, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $53.4 billion and average volume of shares traded in the last three months is around 490.1K. The company has an expected long-term earnings per share growth of 11.9%.
Let’s delve deeper into the factors behind the stock’s price appreciation.
Driving Factors
Better-than-expected earnings performance in the last two quarters of 2019 and upbeat outlook for the full year have contributed to the run-up in Sherwin-Williams' shares.
Sherwin-Williams’ adjusted earnings of $6.65 per share for the third quarter outpaced the Zacks Consensus Estimate of $6.46. The paints and coatings giant also raised its adjusted earnings per share guidance for 2019 to the range of $20.90-$21.30. For the full year, Sherwin-Williams expects a low single-digit percentage increase in net sales from 2018.
Earnings estimates for Sherwin-Williams for 2019 have moved up over the past three months. Over this period, the Zacks Consensus Estimate for 2019 has increased by 0.5% to $21.22. The Zacks Consensus Estimate for earnings for 2019 reflects an expected year-over-year growth of 14.5%.
Sherwin-Williams is benefiting from demand strength in the domestic market, its focus on growth through expansion of operations, productivity improvement initiatives and the Valspar acquisition.
The company is gaining from sustained strength in architectural paint markets in North America. Its sales in the third quarter were driven by increased paint sales volume in North American stores and higher selling prices that more than offset weak demand across certain end-markets outside the United States.
Sherwin-Williams also remains committed to expand its retail operations. It is focused on capturing a larger share of its end-markets, as reflected by an increasing number of retail stores. The company added 31 net new stores in the first nine months of 2019. Plans are in place to add around 80-100 net new stores in North America by the end of 2019.
The company is also benefiting from synergies of the Valspar acquisition. The buyout has enabled Sherwin-Williams to strengthen its position as a leading paints and coatings provider globally. The company expects to achieve total annual run rate synergies of around $415 million at the end of 2019.
A few better-ranked stocks in the construction space include Orion Group Holdings, Inc. (ORN - Free Report) , Gibraltar Industries, Inc. (ROCK - Free Report) and MasTec, Inc. (MTZ - Free Report) .
Orion Group Holdings has an expected earnings growth rate of 54.1% for the current year and sports a Zacks Rank #1 (Strong Buy). The company’s shares have gained 25.5% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gibraltar Industries has an expected earnings growth rate of 19.2% for the current year and carries a Zacks Rank #1. Its shares have rallied 58.2% in the past year.
MasTec has an expected earnings growth rate of 37.1% for the current year and carries a Zacks Rank #2 (Buy). Its shares have surged 52.4% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Sherwin-Williams (SHW) Up 47% YTD: What's Driving the Rally?
The Sherwin-Williams Company's (SHW - Free Report) shares have surged 47% year to date. The company has also outperformed its industry’s rise of 44% to over the same time frame. Moreover, it has outpaced the S&P 500’s rise of around 24% year to date. The stock is also up around 11% over the past three months.
Sherwin-Williams, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $53.4 billion and average volume of shares traded in the last three months is around 490.1K. The company has an expected long-term earnings per share growth of 11.9%.
Let’s delve deeper into the factors behind the stock’s price appreciation.
Driving Factors
Better-than-expected earnings performance in the last two quarters of 2019 and upbeat outlook for the full year have contributed to the run-up in Sherwin-Williams' shares.
Sherwin-Williams’ adjusted earnings of $6.65 per share for the third quarter outpaced the Zacks Consensus Estimate of $6.46. The paints and coatings giant also raised its adjusted earnings per share guidance for 2019 to the range of $20.90-$21.30. For the full year, Sherwin-Williams expects a low single-digit percentage increase in net sales from 2018.
Earnings estimates for Sherwin-Williams for 2019 have moved up over the past three months. Over this period, the Zacks Consensus Estimate for 2019 has increased by 0.5% to $21.22. The Zacks Consensus Estimate for earnings for 2019 reflects an expected year-over-year growth of 14.5%.
Sherwin-Williams is benefiting from demand strength in the domestic market, its focus on growth through expansion of operations, productivity improvement initiatives and the Valspar acquisition.
The company is gaining from sustained strength in architectural paint markets in North America. Its sales in the third quarter were driven by increased paint sales volume in North American stores and higher selling prices that more than offset weak demand across certain end-markets outside the United States.
Sherwin-Williams also remains committed to expand its retail operations. It is focused on capturing a larger share of its end-markets, as reflected by an increasing number of retail stores. The company added 31 net new stores in the first nine months of 2019. Plans are in place to add around 80-100 net new stores in North America by the end of 2019.
The company is also benefiting from synergies of the Valspar acquisition. The buyout has enabled Sherwin-Williams to strengthen its position as a leading paints and coatings provider globally. The company expects to achieve total annual run rate synergies of around $415 million at the end of 2019.
The Sherwin-Williams Company Price and Consensus
The Sherwin-Williams Company price-consensus-chart | The Sherwin-Williams Company Quote
Stocks Worth a Look
A few better-ranked stocks in the construction space include Orion Group Holdings, Inc. (ORN - Free Report) , Gibraltar Industries, Inc. (ROCK - Free Report) and MasTec, Inc. (MTZ - Free Report) .
Orion Group Holdings has an expected earnings growth rate of 54.1% for the current year and sports a Zacks Rank #1 (Strong Buy). The company’s shares have gained 25.5% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gibraltar Industries has an expected earnings growth rate of 19.2% for the current year and carries a Zacks Rank #1. Its shares have rallied 58.2% in the past year.
MasTec has an expected earnings growth rate of 37.1% for the current year and carries a Zacks Rank #2 (Buy). Its shares have surged 52.4% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>